subject: Purpose Of Financial Accounting Services,accounts Payable Services And Bookkeeping Services [print this page] The financial accounting is one such area which requires great attention in corking the business from slipping into a crisis. Hence, companies with dedicated professionals provide financial accounting services at relatively fair price, with the best output. Confidentiality of the records is maintained throughout the transaction.
The business or personal financial accounting records require effective management to generate an accurate accounting report on a timely and proactive basis. The major financial accounting services provided by outsourcing organizations include
financial bookkeeping services
accounts payable services
account receivable services
payroll management services
tax preparation services
The day-to-day bookkeeping and monthly or quarterly accounts are prepared and maintained with accurate, yet professional, calculations. Annual accounts for the statutory annual audit, periodic tax, sales tax, statements of employees, bonus payments, administration of commissions, customer invoices, etc. are also prepared by the professional chartered accountants of an outsourcing company, ensuring maximum benefit to the businesses in a short time.
In the financial bookkeeping services, the bookkeeper (also known as accounting clerk or accounting technician) records the financial transactions of the day, like sales, purchases, income, and payments by an individual or organization, in the correct day-book, customer ledger, suppliers ledger, and general ledger. The accountant then prepares financial reports like income statements and balance sheets, using the transaction record generated by the bookkeeper.
Accountants also keep track of the money to be paid to the suppliers by an individual or organization, and also, the money owed to that organization by the entities of other companies. Automation of the entire process has made the enterprises to outsource the accounting tasks or projects which would generate faster output at a fair price.
Payroll process undergo consistent changes in the payroll legislation. Factors like statutory payments and deductions, Pay as you earn (PAYE), annual changes in tax codes, national insurance bands, etc. have to be often eyed for while processing the payroll statement of salaries, wages, bonuses and deductions.
Tax preparation services are executed by an attorney, certified public accountant or enrolled agent. The client's data and balance sheets are first examined and then entered into an appropriate tax software. After data processing, the tax return is verified to check all the information received has been correctly entered and accounted for. The returns, after required reviews, modifications and updations are then transferred to the client.
In order to keep the business on the track of growth and to maintain a long-living customer relationship, it is imperative to concentrate more on the core activities of the business rather than non-core processes. Hence tedious and time consuming tasks like accounting and financing are outsourced to offshore companies to reduce the expense, increase efficiency, optimize customer relationship and decrease risks.
